Required information

Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3

[The following information applies to the questions displayed below.] Widmer Watercrafts predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the companys production activities during May 2017 follows.

Purchased raw materials on credit, $200,000.

Materials requisitions record use of the following materials for the month.

Job 136	$	48,500
Job 137		33,000
Job 138		19,800
Job 139		22,800
Job 140		7,200
Total direct materials		131,300
Indirect materials		20,500
Total materials used	$	151,800

Paid $15,000 cash to a computer consultant to reprogram factory equipment.

Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$	12,200
Job 137		10,600
Job 138		37,700
Job 139		39,200
Job 140		3,600
Total direct labor		103,300
Indirect labor		25,500
Total	$	128,800

Applied overhead to Jobs 136, 138, and 139.

Transferred Jobs 136, 138, and 139 to Finished Goods.

Sold Jobs 136 and 138 on credit at a total price of $535,000.

The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building	$	68,000
Depreciation of factory equipment		38,500
Expired factory insurance		12,000
Accrued property taxes payable		35,000

Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

rev: 02_01_2017_QC_CS-77139

_{2. Prepare journal entries to record the events and transactions a through i.}

f. Record the transfer of completed jobs 136,138 and 139 to finished goods.

g1. Record the entry for sales on account for Jobs 136 and 138.

g2Record the entry for the cost of sales of Jobs 136 and 138.

h.Record other factory overhead (depreciation, insurance and property taxes).

i. Record the entry to apply overhead to Jobs 137 and 140 (Work in Process).